5. Warren Buffett Stock Basics

[@Alfosan2010]

Preston, you are doing gods work. I really appreciate it. If you were a "stock" I would definitely buy you and hold you long term.

[@agirlfriendfreeboy3245]

Do you like my Nickname? I've made you waste 5 sec HAARAWRARARARAARHAÆ

[@MAOOMI]

This is so sweet

[@lancewhitehorse1703]

You gotta say 'No Homo' after some shit like this

[@clickhere7129]

@@MAOOMI *T O D A Y $ 1 6 5 0* expert0ption.com/xmforex

[@ZenTradeGame]

Idk man Sounds like slavery to me 🤔

[@wayneoh7710]

Watching this during the 2020 virus lockdown!! Such a good use of spare time. Amazing lessons, thanks

[@keeganpullar386]

Same bro

[@danndeelion]

Myself as well! Brushing up on some very good lessons, this one especially!

[@adeyemidaremoses]

Same here. I see the crowd rushing to the index market but my instinct tells me to learn more. I tried to read security analysis and the intelligent investor but they seems too complex for my novice mind. I’m glad I found this series. I will definitely watch it multiple times and continue to save, before participating in the stock market. WB already warned about the 2021 crash.

[@Nico-qs5dy]

I can’t thank you enough! You are literally the only one that explains everything in such a way that I can fully understand it!

[@surao8257]

This is by far the best lessons I have seen on Stock market. Why can’t universities teach us in such a brilliant way? Great jo!

[@AlbertGReene-p8w]

Don't forget that Charlie Munger and Warren Buffett invented the idea of investing and buying at both market highs and lows. As Warren Buffet noted, he has witnessed this occur frequently during his life. I'm not a trader. Never did my husband and I make more money than others in the middle class. With a $4 million stock portfolio, we intend to retire at age 58. Never have we ever sold even one share of stock...

[@viewfromthehighchairr]

@Margaret22- It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing....

[@devereauxjnr]

@@viewfromthehighchairr The fact that the market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.

[@billclinton-f8n]

@@devereauxjnr Do you mind sharing info on the adviser who assisted you? been saving for pension since age 34 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively.

[@devereauxjnr]

@@billclinton-f8n Have you heard of "NICOLE DESIREE SIMON? She gets featured regularly on CNBC. Everyone in my office works with her including myself. I personally use tax-deferred accounts to hold my investments. That way I avoid capital gains taxes. There are other options your advisor could brief you about.

[@billclinton-f8n]

@@devereauxjnr Thank you. I just checked her out now on the web and I've sent an email. I hope she gets back to me soon. I've been thinking of doing this for a long time now, and I've procrastinated enough already.

[@eyoong9065]

I first started learning from Preston since Dec 2016. Preston had changed my life completely. I and my family is so happy we have people like Preston that providing great help to the community. The most valuable thing i learned and hardest to do was not to do anything and wait for the right opportunity . I am currently (Apr 2020) 60% on USD cash & 20% on PM (physical & hi quality gold equities). Unfortunately i bought more physical silver that lag, subjected to industry demand and less liquid than gold which i should be the other way. I guess i just need to be more patient for silver time. Thanks Preston

[@dimaskelvianto5173]

Dear Mr Preston Pysh, Greeting from Indonesia. I would like to thank you so much for all your educational videos you made for all of us, especially for me. You made it so simple and relevant. Wishing you all the best in whatever you do and your future endeavors! Thank you once again!

[@ScalperSpecltr]

Preston, from the bottom of my heart, I would like to thank you for all the videos and knowledge that you are sharing with us. During the course of my learnig the thinking process of WEB, I have browsed tons of materials, but, I have to admit that noone has impressed me as much as your videos. Please keep on adding materials, and helping us. I am just blown away with your website and materials. Thanks.

[@sunilvamadevan1354]

Thanks for making the calculations to be understood clearly & thereby helping to be safely positioned in the market !

[@ItzMaxYongz]

Holy , thank you very much sir ! I can't believe all of this course are free !! May god bless you and your family !

[@MrJonRio]

This is a great series of videos and very easily understandable. I very much appreciate that you have gone to the trouble. May blessings follow you.

[@eric4438]

I have been everywhere these past couple of weeks trying to wrap my head around a cohesive understanding of how to gain the knowledge I need to do my investing with not much success. Been reading a lot and watching a lot of videos and tutorials but none as constructive of how you did your videos. Thumbs up and Great work!

[@rowanphillips3497]

I love your course. Its very well structured and I've already learned a lot.

[@stevevonrock2416]

thank you preston. i can finally say i found a teacher i can understand on the subject material. first channel i have ever subscribed to. thanks again

[@BrandonChung]

This is amazing, how is it free! Thank you for simplifying stocks.

[@PrSp00]

Good morning. First of all, let me tell you that you did a great job . Before , for me, the stock market was a mess . Now I feel more confident , and possessed of some tools that allow me to see beyond the basics. You won another subscriver. My sincere thanks, from Portugal.

[@alexshay7969]

Thanks for pointing me to Google Stock Screener :) I went through some of your lessons a couple of months ago and I realize that I dind't understand very well, and I came back to them and I'm surprised to find that things are starting to click better. I plan to go through all of them trying to really understand each lessons. Thank you!!

[@andreymaksakov4975]

Taking this course is value investing in itself. Tons of useful insights for free. Very well structured and methodical course. Excellent for the newbies and a great rundown of the basics for those in the game.Highly recommended. Thanks a lot, Preston. Greatly enjoy your podcasts as well. By the way, I am in Central Asia.

[@janscending]

I have to tell you Preston I am someone who takes a while to understand this stuff usually anyway but with the videos you are posting it makes it really easy and simple.I also like how you follow through each lesson on to the next one with the theme of Nancy :-) really great.Much Appreciated

[@georgebeaulieu8976]

Excellent and concise explanation indeed. You spoken slowly and clearly and it is refreshing. I will only add that one must also improve the market timing after that using the Elliott wave principle. Thank you for this essential tutorial. Best regards.

[@pauexclusive8932]

I was looking for in-depth knowledge about the subject without being overwhelmed. Bless this channel and thank you!

[@realitycheck_]

This the best and the easiest explanation of stock market I've ever found on YT! I'm very grateful for that. Thank you Preston for sharing your knowledge with us.

[@messi3666]

u and jazz are the best youtubers explaining about stock

[@jeremysmall9101]

Preston thank you, Sir, for this invaluable information. I started 2 weeks ago on Audible listening to Tony Robins Unshakable and it has opened my eyes to the industry and brought me here. I am very grateful for what you have done. Best Regards

[@freE20121]

This is the best channel. These videos were created in 7 years ago but they are still super values today. Preston is a great Teacher.

[@samuelspencer5047]

Preston Pysh; I wish to show my gratitude for your videos by saying an abundant thanks to you for creating a video that is undoubtedly a great guide for us all in the area investments and finance, truly thank you.

[@julianvalencia6061]

This is awesome information. The only thing I would change would be to give examples with actual, real life, businesses and stocks so that it is more directly applicable.

[@maboshesekeli856]

@Preston Pysh. Thank you for the simple and clear video, my concern is what do i compare to the market price for me to conclude that a stock is undervalued? After a company has passed all the four rules? Rule 1: A stock must be stable and understandable Rule 2: A Stock must have long term prospects Rule 3: A Stock must be managed by vigilant leaders Rule 4: A Stock must be undervalued

[@sumitmahajan7983]

Thank you Preston for making it so easy to understand for other people and sharing your knowledge.Really simple video with tons of information.Thanks again.

[@mps6934]

Starts with the fundamentals and then applies them nicely to stocks! Thanks :)

[@עודטלגלר]

Hi Preston so far iv'e watched the first 5 videos and thet are all grea!! i have been trying toread Graham's book translated to Hebrew but since i have no financial background i had reall hard time understanding what he was talking about, and your videos really start with the basic concept that make everything look simple and undestnadable, so THANKS!!

[@LovelyGrace86]

I’m learning so much from you! Thank you for talking the time to make these videos it really means a lot to those of us new to investing.

[@sanjibmuscat]

Your videos are really great. You also explain it quite clearly. Also the advice you had given in your comment regarding Google Stock Screener is quite helpful.. Please put some advise like this (google screener or for some reference material) in your comments. That will help everyone who is following you, immensely.

[@stephanieoconnor3114]

Nice intro on P/E that I was struggling with. Agree that a stock like AT&T is underpriced. even more so right now in the COVID 19 crisis. BUT AT&T does pay a great dividend. So I do consider dividend payout and history behind the dividend that's paid as very important.

[@terrychen2916]

As an investor it is up to you to assess the risk/return based on the current underlying fundamentals of the business and the economic advantages which this business possess. For example Buffett loves to buy companies that offer a competitive edge. Particularly great brand name products/services which turnover quickly. For example, coke, gillette, washington post, geico. These products/services have great brand name, inventory turnover and in buffett case is run by great management.

[@daveletsgo39]

it has been said their is no greater deed than helping those less fortunte it,i beleive this applies to education more so than any other aspect of life.thank you for your generosity.

[@ArunRangarajan]

Great videos, Preston! You are a master teacher and should continue making such lessons. One small addition, if I may: the max P/E of 15 was chosen probably based on the AAA bond yield at that time. Graham suggested earnings yield of at least twice the AAA bond yield to James Rea (Rea's memoir on Graham in 1978). As of today (Oct 1, 2017), the AAA bond yield is 3.64%, so the max P/E would be 100/(2*3.64) = 13.7

[@AhmedOmar-qy4ss]

Hi Professor Preston Pysh : i have question and i could find out how you figure it out in mintes 12:14 while you are showing two table of number P/E is 5 = 20% in return from where you get P/E is 10=10% in return up to P/E25= 4% Return i can understand from where we got P/E 5 = 20% but i couldn't understand from where the rest comes as well as with P/BV 5 = 20% safety up to P/BV .7 = 143% from where all this number come , if you take in the consideration that nancey business p/bv=14.28 ? thank

[@alialrubayee734]

Incredible value in these videos. Thankyou so much

[@thedonmaster007]

Hi preston, you said the three main things to be looking at are price, earnings and book value. but what about growth? the company may not have great numbers right now, but may be growing at a rapid rate and will have great numbers in the future? Don't we factor in growth (e.g. the PEG ratio?)

[@joehawk1207]

Great video man. Difficult concepts made easy to understand. Thank you very much!

[@neighborhoodandrew]

Watching in 2024 and so thankful. Thank you Preston

[@FredoCorleone]

This guys is the absolute best explaining those things...

[@jenishshrestha3700]

if the price to book is low the earning of a SHAREHOLDER is bad or earning of a COPMPANY is low?? AND if the earnings of a COMPANY or the SHAREHOLDER is really good the price to book is gonna be really bad? at 10:34 min. i kind didn't understand and please do comment

[@Neon-xf9cl]

Your Class is best!

[@jeremybaybayan3728]

Thank you for posting these videos. Really helping me invest into my future.

[@as04211]

love love love your courses!!! very easy to understand. thanks so much for sharing your videos.

[@summercoat8122]

I love this, I haven't yet read Benjamin Grahams book or anything on Buffet but this has already been my strategy and it has paid off great for me.

[@AakashSawant001]

Awesome video sir ....and nicely explained the concept .!! thanks

[@bomiwonabi]

Nice video

[@Chowmeister]

Aakash Sawant Agreed

[@bonaku20]

'Nicely' is used commonly in India

[@kdz2369]

These lessons are GOLD!!

[@Rick24.]

Thank you Thank you Thank you I can't thank you enough very well explained very easy to follow good job!

[@James2lynn]

Man I keep coming back to these videos! Really good playlist for new investors!

[@bmxider]

Excellent lesson. Clear, concise and very accurate

[@bmxider]

No. THANK You for Lecturing. I really like everything about Mr. Buffett

[@orestesdd]

It seems that the rule of (E/P) by (P/B) < 22.5 does not apply to lots of stock included in the DOW 30 Index. It seem that rule applies better to banks, but it does not seem to work with tech stocks like Apple, Microsoft, Intel and NXPI to mention just a few. Is there any other way to decide if tech stocks are cheap or inexpensive at any give time? Thanks.

[@samabdow7598]

Tech Stocks rely more on their "Growth Factor" instead of their current Earnings. Buffet wants to invest in stuff where he can reasonably identify the survival in 5-10yrs from now. In Tech stocks, you have no idea because of how volatile it is. Most people just assume "Growth is bigger and bigger". This might have a delayed Earnings effect. It will make you 10x in some companies, but let you take enormous losses in other. In my opinion, you will sleep better at night if you invest in stable companies. You can sleep with $100,000 in the stocks, as opposed to $10,000 in bits and pieces spread around because of the market expecting an enormous amount of growth

[@casesonic6855]

Finally, someone that could explain the Graham approach without having to read the tome of information Intelligent Investor.

[@johnmichaelcanero2210]

Hi Preston, what is the difference of comparing its intrinsic value calculation and getting its value and doing the multiplication of the Price to Earnings Ration and Price to Book Ratio, and getting less than 22.5? Are they common in comparing its undervalue and overvalue? Or the intrinsic value calculation is more precise?

[@Đ.ß.T]

Hey i just found your channel and i am glad i did because even tho i had some understanding of the market this really did help me do better investments and im only 15

[@JayPatel-iu7pl]

Very informative ....good job!

[@MrSAM10099]

Hi Sir the way you explained was really fantastic ..I am actually new to the Stock market and looking for long term investments in India...still learning and hoping if this formula still works in 2020 ???? Please help me on this

[@rohitvarkhedkar]

I love your videos..... after this i feel confident investing in stocks now :)

[@luisf7105]

Thank you for keeping this really simple, and not speaking over beginner's heads like mine!

[@antoniowakefield2449]

Love this page it makes everything so much easier!!!

[@linokakiva4775]

I’m really trying to learn this

[@jobmascardo1694]

You explained very well Preston. Thank you!

[@loaf7620]

Where did you get the 22.5 from? Also does the rule of finding a P/E Ratio of under 15 and a P/BV Ratio of 1.5 and lower apply to every stock?

[@imlkr_]

PB X PV!! Bcz 15 X 1.5 gives 22.5. Of course it doesn't apply to all stocks because some of them are naturally overpriced..

[@hugopolo5678]

Incredible Course!!!! Congratulations for this

[@nomepersaud6764]

Amazing work Preston, keep this grand work up!

[@copilotgemini]

Thanks for the great channel . Its like finding diamond in coal mine.

[@abdoulaisecka8539]

Very understandable, and good structure in the chapters. Greetings from Oslo,norway!

[@ofeklevi5767]

your lessons are amazing man thank you

[@specialistsprofessionalsin1331]

Your explanations are crystal clear

[@kitu566]

Preston What percentile of debt is considered manageable debt, how can the trend be looked at.

[@zaerdna]

It's a little hard for a dane to use this system since most danish markets don't show the p/bv for any companies.

[@sqoches]

Great Video, thanks

[@bloodsportfilms]

Great video! Very simple and easy to understand, good job!

[@harshildave6482]

Amazing brother. I like P/E and P/B combine formula for value investing. Thank you so much.

[@ferguscrutchley3822]

Whats the difference between 'Book value per share' and 'Tangible book value per share'

[@imlkr_]

Tangible book value doesn't include all the Assets of the company which aren't physical and assest which keep changing like its brand value!

[@PaulPaquin]

I love this formula IF P/E * P/BV < 22.5 then this is a company I need to look at!

[@DarkAngel-zh2gk]

Yep, I just found a company with P/E *P/BV=4.1 GOTTA INVEST ASAP I GUESS

[@18ngocduong]

as you said at 14:10. That you took P/E =15 * P/BV=1.5 However, at 14.50. Why did you take P/E =5 multiply for P/BV =14.3 instead of 0.7????? A bit confused!!1

[@MS-tl6hc]

I'm guessing you figured it out by now, but if not (and if you're still alive cause I realize this is 7 years later), price to book value is 10 / 0.7

[@boipinoi604]

So a book price of 1 means if the company liquidates in a year, you will get your money back. To my understanding, the debtors will have to be paid first before the shareholders so that would not necessary get your money back with a pbv of 1?

[@dragonchr15]

Can you do a Robert Axelrod stock valuation course?

[@alexshay7969]

Hi Preston, Thanks for the lessons. These are great lessons. As for Buffet's key ratio, I calculated this for HNZ and other stocks and I'm finding that the number comes out very high. What is the best method for finding a company with the desired value? Thank you.

[@nagasreenu926]

May God bless you Preston, AMEN.

[@elizabethjack595]

Thank you so much for sharing your experience and skills and knowledge and so helpful I am really interested in this video on KZbin channel loved it I am really want to learn more about increase Money's

[@terrychen2916]

The rest is up to you assess the growth potential (If it has any growth potential left) and whether it current market price is below what you believe the intrinsic worth of the business is.

[@gruminatorII]

Absolutely love your presentations up to now, would have come up with the P/E multiplied by P/B value myself before you said it, thats how clear the previous explanations where. Thank you !

[@cutarecutarescu]

gold!!!

[@CreatingAlong]

Great video, but according to warren buffet gold is one of the worst investments making it valueless to him.

[@Kakashi_hatakeee]

@@CreatingAlong for him

[@zrt95]

perhaps this is addressed later, but for book value calculations do you deduct intangible assets and/or preferred shareholder equity from the total equity?

[@555avi]

I'm still going through your course 1. gr8 tutorials by the way. Was just wondering if your formula p/e * p/b.v

[@sourabhpatravale8348]

I'm from India and I really love your vedieos.

[@jozefmatyasek]

thank you so much for great lessons. This is exactly what we all looking for. Can you help me ? Which lesson is about negative P/E or negative P/BV ? because I found lot of companies with even negative EPS and I don't know if its bad sign or good sign. thank you for your answer. you are great

[@wwbaseball94]

i don't understand where you guys are coming up with numbers of 10-15% gains, when most stocks i look at have a 2-3% annual dividend, are you guys accounting for the growth of the stock price or capital gains? or is there really comanies that will offer 15%

[@pradoprado9993]

How did you get the safety percentage and why if its below 1 its over 100%? can someone explain please

[@imlkr_]

The safety percentage is nothing but the amount you would receive compared to what you actually paid for it. If you pay $100 for a stock which is worth only 20 Dollars( book value) then in case something bad happens and you want to sell it you can only get its original worth back which is $20 so you just got 20% of your capital back which is the margin of safety!! If price to book value is less than 1 you get a 100percent margin of safety because you are paying less than what it is actually worth and you will receive your full amount back if you sell it!!

[@bIuecrimson]

I'll agree this is a solid way to invest once you understand how to use the data, but it's going to miss some potentially good stocks because they don't fit the system. I invested in Stratasys which is 3D printing. It's shown growth since then and I hope to see it increase over 10 years along with the industry.

[@BenjaminDaly]

These videos are so valuable Preston. Many thanks!

[@sivabalanjayakrishnan928]

Hi again Preston, Thank you very much for answering my earlier question. I have another question for you. If the price to book, (P/BV) is below 1, isn't that a very low risk investment? I mean, what's the worst that can happen? Like in the example, if the P/BV is 0.70 and I decide to buy the stock I don't see how that's a bad idea at all. Either, the stock price will rebound or at worst things go bad, the company liquidates and I get $1 for my initial $0.70 investment, right?

[@kenanlambo]

Can u do a video on how to find a book value per share and also the number of outstanding shares on a stock quote from any of the websites, such as MSN, Marketwatch etc

[@kalidasskaruppasami7099]

Preston, does this calculation work for Indian market with Indian rupees??? Can anyone clarify this to me?

[@imlkr_]

Of course! But most Indian companies are not trading at these valuations because India is a growing Nation!

[@kalidasskaruppasami7099]

@@imlkr_ thanks

[@gameinws]

This course was too good man. I love you. Thanks

[@bensonandyou]

Very Good lectures. I have learned a lot. i was wondering how to calculate the P/E ratio? market value per share is changing in every moment, and the income statement and balance sheet come out once a year. how to pick a market value per share when calculating?